Identifying Industry-Specific Components of Product Liability Response System Using Delphi-AHP Method

• Published in: Management and Production Engineering Review 2016-12, Vol.7 (4), p.27-38
• Main Authors: Seo, JunHyeok, Bae, SungMin
• Format: Article
• Language: English
• Subjects: Delphi-AHP method; manufacturing company; PL response system; product liability; Products liability
• ISSN: 2082-1344; 2080-8208; 2082-1344
• DOI: 10.1515/mper-2016-0033

PL (product liability) response system is an enterprise-wide system that prevents company’s financial loss due to PL-related accidents. Existing researches on PL response system are mainly focused on preventive and/or defense strategies for the companies. Also, it is obvious that each industry has their original characteristics related on PL issues. It means industry-specific characteristics should be considered to adopt PL response strategies. Thus, this paper aims to discuss industry-specific PL response system and their components. Based on prior researches, we tried to reveal the possibility of its application to manufacturing companies of existing PL response strategies using Delphi method with PL experts. Based on first round results, we tried to classify existing PL strategies of manufacturing companies into several categories. To validate our suggestion for essential components of PL response system, second round Delphi method are applied. Analytic hierarchy process (AHP) technique will be applied to identify a prioritized list of each components and strategies. Existing PL response strategies could be categorized with six components – strategy, technology, investment, training, awareness, and organization. Among six components, Technology – it represents the technology needed for improving the safety of all products – is the most important components to prepare PL accidents. The limitation of this paper is on the size of survey and variety of examples. However, the future study will enhance the potential of the proposed method. Regardless of rich research efforts to identify PL response strategies, there is no effort to categorize these strategies and prioritized them. Well-coordinated and actionable PL response strategies and their priorities could help small-and-medium sized enterprise (SME) to develop their own PL response system with their limited resources.